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Table of Contents 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to           

Commission file number 001-32593

Global Partners LP

(Exact name of registrant as specified in its charter)

Delaware

74-3140887

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

P.O. Box 9161
800 South Street
Waltham, Massachusetts 02454-9161
(Address of principal executive offices, including zip code)

(781) 894-8800
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Units representing limited partner interests

GLP

New York Stock Exchange

9.75% Series A Fixed-to-Floating Rate Cumulative Redeemable

GLP pr A

New York Stock Exchange

Perpetual Preferred Units representing limited partner interests

9.50% Series B Fixed Rate Cumulative Redeemable

GLP pr B

New York Stock Exchange

Perpetual Preferred Units representing limited partner interests

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  

Accelerated filer  

Non-accelerated filer  

Smaller reporting company  

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The issuer had 33,995,563 common units outstanding as of May 5, 2021.

Table of Contents 

TABLE OF CONTENTS

PART I.     FINANCIAL INFORMATION

Item 1.     Financial Statements (unaudited)

3

Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020

3

Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020

4

Consolidated Statements of Comprehensive (Loss) Income for the three months ended March 31, 2021 and 2020

5

Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020

6

Consolidated Statements of Partners’ Equity for the three months ended March 31, 2021 and 2020

7

Notes to Consolidated Financial Statements

8

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

37

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

61

Item 4.     Controls and Procedures

63

PART II.     OTHER INFORMATION

64

Item 1.     Legal Proceedings

64

Item 1A.   Risk Factors

64

Item 6.     Exhibits

64

SIGNATURES

66

Table of Contents 

Item 1.Financial Statements

GLOBAL PARTNERS LP

CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)

March 31,

December 31,

 

    

2021

    

2020

 

Assets

Current assets:

Cash and cash equivalents

$

11,598

$

9,714

Accounts receivable, net

314,179

227,317

Accounts receivable—affiliates

 

4,520

 

2,410

Inventories

 

468,841

 

384,432

Brokerage margin deposits

 

31,348

 

21,661

Derivative assets

 

8,584

 

16,556

Prepaid expenses and other current assets

 

85,949

 

119,340

Total current assets

 

925,019

 

781,430

Property and equipment, net

 

1,075,328

 

1,082,486

Right of use assets, net

294,027

290,506

Intangible assets, net

 

34,002

 

35,925

Goodwill

 

328,569

 

323,565

Other assets

 

27,139

 

26,588

Total assets

$

2,684,084

$

2,540,500

Liabilities and partners’ equity

Current liabilities:

Accounts payable

$

237,991

$

207,873

Working capital revolving credit facility—current portion

 

202,400

 

34,400

Lease liability—current portion

74,182

75,376

Environmental liabilities—current portion

 

4,455

 

4,455

Trustee taxes payable

 

40,930

 

36,598

Accrued expenses and other current liabilities

 

93,936

 

126,774

Derivative liabilities

 

21,001

 

12,055

Total current liabilities

 

674,895

 

497,531

Working capital revolving credit facility—less current portion

 

150,000

 

150,000

Revolving credit facility

 

33,400

 

122,000

Senior notes

 

738,031

 

737,605

Long-term lease liability—less current portion

231,105

226,648

Environmental liabilities—less current portion

 

48,468

 

49,166

Financing obligations

146,064

146,535

Deferred tax liabilities

56,058

56,218

Other long—term liabilities

 

61,369

 

59,298

Total liabilities

 

2,139,390

 

2,045,001

Partners’ equity

Series A preferred limited partners (2,760,000 units issued and outstanding at March 31, 2021 and December 31, 2020)

67,226

67,226

Series B preferred limited partners (3,000,000 units and 0 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively)

72,305

Common limited partners (33,995,563 units issued and 33,968,667 outstanding at March 31, 2021 and 33,995,563 units issued and 33,966,180 outstanding at December 31, 2020)

 

403,537

 

428,842

General partner interest (0.67% interest with 230,303 equivalent units outstanding at March 31, 2021 and December 31, 2020)

 

(2,072)

 

(2,169)

Accumulated other comprehensive income

 

3,698

 

1,600

Total partners’ equity

 

544,694

 

495,499

Total liabilities and partners’ equity

$

2,684,084

$

2,540,500

The accompanying notes are an integral part of these consolidated financial statements.

3

Table of Contents 

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit data)

(Unaudited)

Three Months Ended

 

March 31,

    

2021

      

2020

 

Sales

$

2,553,327

$

2,595,093

Cost of sales

 

2,408,295

 

2,449,355

Gross profit

 

145,032

 

145,738

Costs and operating expenses:

Selling, general and administrative expenses

 

46,324

 

40,923

Operating expenses

 

80,528

 

82,553

Amortization expense

 

2,723

 

2,712

Net (gain) loss on sale and disposition of assets

(475)

743

Total costs and operating expenses

 

129,100

 

126,931

Operating income

 

15,932

 

18,807

Interest expense

 

(20,359)

 

(21,601)

Loss before income tax benefit

 

(4,427)

 

(2,794)

Income tax benefit

 

130

 

5,869

Net (loss) income

 

(4,297)

 

3,075

Net loss attributable to noncontrolling interest

 

 

201

Net (loss) income attributable to Global Partners LP

 

(4,297)

 

3,276

Less: General partner’s interest in net (loss) income, including incentive distribution rights

 

739

 

22

Less: Preferred limited partner interest in net income

1,820

1,682

Net (loss) income attributable to common limited partners

$

(6,856)

$

1,572

Basic net (loss) income per common limited partner unit

$

(0.20)

$

0.05

Diluted net (loss) income per common limited partner unit

$

(0.20)

$

0.05

Basic weighted average common limited partner units outstanding

33,967

 

33,868

Diluted weighted average common limited partner units outstanding

 

34,296

 

34,275

The accompanying notes are an integral part of these consolidated financial statements.

4

Table of Contents 

GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In thousands)

(Unaudited)

Three Months Ended

 

March 31,

2021

    

2020

 

Net (loss) income

$

(4,297)

$

3,075

Other comprehensive income (loss):

Change in fair value of cash flow hedges

 

2,052

 

Change in pension liability

 

46

 

(2,980)

Total other comprehensive income (loss)

 

2,098

 

(2,980)

Comprehensive (loss) income

 

(2,199)

 

95

Comprehensive loss attributable to noncontrolling interest

 

 

201

Comprehensive (loss) income attributable to Global Partners LP

$

(2,199)

$

296

The accompanying notes are an integral part of these consolidated financial statements.

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GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

6

Three Months Ended

March 31,

 

    

2021

    

2020

 

Cash flows from operating activities

Net (loss) income

$

(4,297)

$

3,075

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

Depreciation and amortization

24,975

25,775

Amortization of deferred financing fees

 

1,344

1,261

Bad debt expense

 

(68)

223

Unit-based compensation expense

 

259

288

Net (gain) loss on sale and disposition of assets

 

(475)

743

Changes in operating assets and liabilities:

Accounts receivable

 

(86,794)

222,995

Accounts receivable-affiliate

 

(2,110)

(2,303)

Inventories

 

(84,024)

235,979

Broker margin deposits

 

(9,687)

13,331

Prepaid expenses, all other current assets and other assets

 

33,628

(27,813)

Accounts payable

 

30,118

(227,688)

Trustee taxes payable

 

4,332

(6,850)

Change in derivatives

 

16,918

(76,645)

Accrued expenses, all other current liabilities and other long-term liabilities

 

(30,102)

(24,454)

Net cash (used in) provided by operating activities

 

(105,983)

 

137,917

Cash flows from investing activities

Acquisitions

 

(7,071)

 

Capital expenditures

 

(16,901)

(11,690)

Seller note issuances

(1,690)

(539)

Proceeds from sale of property and equipment

 

2,994

1,189

Net cash used in investing activities

 

(22,668)

 

(11,040)

Cash flows from financing activities

Net proceeds from issuance of Series B preferred units

72,167

Net borrowings from (payments on) working capital revolving credit facility

168,000

(115,000)

Net (payments on) borrowings from revolving credit facility

 

(88,600)

50,000

LTIP units withheld for tax obligations

 

(26)

(25)

Noncontrolling interest capital contribution

400

Distributions to limited partners and general partner

 

(21,006)

(19,905)

Net cash provided by (used in) financing activities

 

130,535

 

(84,530)

Cash and cash equivalents

Increase in cash and cash equivalents

 

1,884

 

42,347

Cash and cash equivalents at beginning of period

 

9,714

 

12,042

Cash and cash equivalents at end of period

$

11,598

$

54,389

Supplemental information

Cash paid during the year for interest

 

$

16,235

 

$

18,526

The accompanying notes are an integral part of these consolidated financial statements.

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GLOBAL PARTNERS LP

CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY

(In thousands)

(Unaudited)

Series A

Series B

Accumulated

Preferred

Preferred

Common

General

Other

Total

Limited

Limited

Limited

Partner

Comprehensive

Partners’

 

Three months ended March 31, 2021

    

Partners

Partners

Partners

    

Interest

    

Income (Loss)

    

Equity

 

Balance at December 31, 2020

$

67,226

$

$

428,842

$

(2,169)

$

1,600

$

495,499

Issuance of Series B preferred units

72,167

72,167

Net income (loss)

 

1,682

 

138

 

(6,856)

 

739

 

 

(4,297)

Distributions to limited partners and general partner

(1,682)

 

(18,698)

 

(642)

 

(21,022)

Unit-based compensation

 

259

 

 

259

Other comprehensive income

 

 

 

2,098

2,098

LTIP units withheld for tax obligations

 

(26)

 

 

(26)

Dividends on repurchased units

 

16

 

 

16

Balance at March 31, 2021

$

67,226

$

72,305

$

403,537

$

(2,072)

$

3,698

$

544,694

Partners' Equity

Series A

Accumulated

Preferred

Common

General

Other

Total

Limited

Limited

Partner

Comprehensive

Noncontrolling

Partners’

 

Three months ended March 31, 2020

    

Partners

Partners

    

Interest

    

Loss

    

Interest

    

Equity

 

Balance at December 31, 2019

$

67,226

$

398,535

$

(2,620)

$

(5,076)

$

1,174

$

459,239

Net income (loss)

 

1,682

 

1,572

 

22

 

 

(201)

 

3,075

Noncontrolling interest capital contribution

400

400

Distributions to limited partners and general partner

(1,682)

 

(17,848)

 

(443)

 

 

(19,973)

Unit-based compensation

 

288

 

 

 

288

Other comprehensive loss

 

 

 

(2,980)

 

(2,980)

LTIP units withheld for tax obligation

 

(25)

 

 

 

(25)

Dividends on repurchased units

 

68

 

 

 

68

Balance at March 31, 2020

$

67,226

$

382,590

$

(3,041)

$

(8,056)

$

1,373

$

440,092

The accompanying notes are an integral part of these consolidated financial statements.

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1.    Organization and Basis of Presentation

Organization

Global Partners LP (the “Partnership”) is a master limited partnership formed in March 2005. The Partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products and renewable fuels in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island, New York, New Jersey and Pennsylvania (collectively, the “Northeast”). The Partnership is one of the region’s largest independent owners, suppliers and operators of gasoline stations and convenience stores. As of March 31, 2021, the Partnership had a portfolio of 1,566 owned, leased and/or supplied gasoline stations, including 283 directly operated convenience stores, primarily in the Northeast. The Partnership is also one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in the New England states and New York. The Partnership engages in the purchasing, selling, gathering, blending, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks (such as ethanol), distillates (such as home heating oil, diesel and kerosene), residual oil, renewable fuels, crude oil and propane and in the transportation of petroleum products and renewable fuels by rail from the mid-continent region of the United States and Canada.

Global GP LLC, the Partnership’s general partner (the “General Partner”), manages the Partnership’s operations and activities and employs its officers and substantially all of its personnel, except for most of its gasoline station and convenience store employees who are employed by Global Montello Group Corp. (“GMG”), a wholly owned subsidiary of the Partnership.

The General Partner, which holds a 0.67% general partner interest in the Partnership, is owned by affiliates of the Slifka family. As of March 31, 2021, affiliates of the General Partner, including its directors and executive officers and their affiliates, owned 5,279,817 common units, representing a 15.5% limited partner interest.

2021 Events

Amended Credit Agreement—On May 5, 2021, the Partnership and certain of its subsidiaries entered into the fifth amendment to third amended and restated credit agreement which, among other things, increases the total aggregate commitment to $1.25 billion and extends the maturity date to May 6, 2024. See Note 7 for additional information.

Series B Preferred Unit Offering—On March 24, 2021, the Partnership issued 3,000,000 9.50% Series B Fixed Rate Cumulative Redeemable Perpetual Preferred Units, liquidation preference of $25.00 per unit (the “Series B Preferred Units”), for $25.00 per Series B Preferred Unit in an offering registered under the Securities Act of 1933. See Note 13.

COVID-19 Pandemic—The COVID-19 pandemic continues to make its presence felt at home, in the office workplace and at the Partnership’s retail sites and terminal locations. The Partnership remains active in responding to the challenges posed by the COVID-19 pandemic and continues to provide essential products and services while prioritizing the safety of its employees, customers and vendors in the communities where the Partnership operates.

Basis of Presentation

The accompanying consolidated financial statements as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and 2020 reflect the accounts of the Partnership. Upon consolidation, all intercompany balances and transactions have been eliminated.

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition and operating results for the interim periods. The interim financial information, which has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), should be read in conjunction with the consolidated financial statements for the year ended December 31, 2020 and notes thereto contained in the Partnership’s Annual Report on Form 10-K. The significant accounting policies described in Note 2, “Summary of Significant Accounting Policies,” of such Annual Report on Form 10-K are the same used in preparing the accompanying consolidated financial statements.

The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that will be realized for the entire year ending December 31, 2021. The consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2020.

Noncontrolling Interest

The Partnership acquired a 60% interest in Basin Transload, LLC (“Basin Transload”) on February 1, 2013. In connection with the terms of an agreement between the Partnership and the minority members of Basin Transload on September 29, 2020, the Partnership acquired the minority members’ collective 40% interest in Basin Transload (see Note 17, “Legal Proceedings” for additional information).

Amounts pertaining to the noncontrolling ownership interest held by third parties in the financial position and operating results of the Partnership are reported as a noncontrolling interest in the accompanying consolidated financial statements for the three months ended March 31, 2020.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The uncertainty surrounding the short and long-term impact of COVID-19, including the inability to project the timing of an economic recovery, may have an impact on the Partnership’s use of estimates. Among the estimates made by management are (i) estimated fair value of assets and liabilities acquired in a business combination and identification of associated goodwill and intangible assets, (ii) fair value of derivative instruments, (iii) accruals and contingent liabilities, (iv) allowance for credit losses, (v) assumptions used to evaluate goodwill, property and equipment and intangibles for impairment, (vi) environmental and asset retirement obligation provisions, and (vii) weighted average discount rate used in lease accounting. Although the Partnership believes its estimates are reasonable, actual results could differ from these estimates.

Concentration of Risk

Due to the nature of the Partnership’s businesses and its reliance, in part, on consumer travel and spending patterns, the Partnership may experience more demand for gasoline during the late spring and summer months than during the fall and winter. Travel and recreational activities are typically higher in these months in the geographic areas in which the Partnership operates, increasing the demand for gasoline. Therefore, the Partnership’s volumes in gasoline are typically higher in the second and third quarters of the calendar year. However, the COVID-19 pandemic has had a negative impact on gasoline demand and the extent and duration of that impact remains uncertain. As demand for some of the Partnership’s refined petroleum products, specifically home heating oil and residual oil for space heating purposes, is generally greater during the winter months, heating oil and residual oil volumes are generally higher during the first

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

and fourth quarters of the calendar year. These factors may result in fluctuations in the Partnership’s quarterly operating results.

The following table presents the Partnership’s product sales and other revenues as a percentage of the consolidated sales for the periods presented:

Three Months Ended

March 31,

    

2021

    

2020

    

Gasoline sales: gasoline and gasoline blendstocks (such as ethanol)

 

62

%  

67

%  

Distillates (home heating oil, diesel and kerosene) and residual oil sales

 

33

%  

29

%  

Crude oil sales and crude oil logistics revenue

 

1

%  

%  

Convenience store sales, rental income and sundries

4

%  

4

%  

Total

 

100

%  

100

%  

The following table presents the Partnership’s product margin by segment as a percentage of the consolidated product margin for the periods presented:

Three Months Ended

March 31,

    

2021

    

2020

    

Wholesale segment

 

18

%  

3

%

Gasoline Distribution and Station Operations segment

 

79

%  

93

%

Commercial segment

3

%  

4

%

Total

 

100

%  

100

%

See Note 14, “Segment Reporting,” for additional information on the Partnership’s operating segments.

None of the Partnership’s customers accounted for greater than 10% of total sales for the three months ended March 31, 2021 and 2020.

Note 2.     Revenue from Contract Customers

Disaggregation of Revenue

The following table provides the disaggregation of revenue from contracts with customers and other sales by segment for the periods presented (in thousands):

Three Months Ended March 31, 2021

 

Revenue from contracts with customers:

    

Wholesale

    

GDSO

    

Commercial

    

Total

 

Refined petroleum products, renewable fuels and crude oil

$

731,187

$

756,008

$

18,784

$

1,505,979

Station operations

 

 

81,848

 

 

81,848

Total revenue from contracts with customers

731,187

837,856

18,784

1,587,827

Other sales:

Revenue originating as physical forward contracts and exchanges

819,731

126,886

946,617

Revenue from leases

 

567

 

18,316

 

 

18,883

Total other sales

820,298

18,316

126,886

965,500

Total sales

$

1,551,485

$

856,172

$

145,670

$

2,553,327

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Three Months Ended March 31, 2020

 

Revenue from contracts with customers:

    

Wholesale

    

GDSO

    

Commercial

    

Total

 

Refined petroleum products, renewable fuels, crude oil and propane

$

510,773

$

745,615

$

67,181

$

1,323,569

Station operations

 

 

80,901

 

 

80,901

Total revenue from contracts with customers

510,773

826,516

67,181

1,404,470

Other sales:

Revenue originating as physical forward contracts and exchanges

1,096,921

75,437

1,172,358

Revenue from leases

 

540

 

17,725

 

 

18,265

Total other sales

1,097,461

17,725

75,437

1,190,623

Total sales

$

1,608,234

$

844,241

$

142,618

$

2,595,093

Nature of Goods and Services

Revenue from Contracts with Customers (ASC 606):

Refined petroleum products, renewable fuels and crude oil sales—Under the Partnership’s Wholesale, Gasoline Distribution and Station Operations (“GDSO”) and Commercial segments, revenue is recognized at the point where control of the product is transferred to the customer and collectability is reasonably assured.

Station operations—Revenue from convenience store sales of grocery and other merchandise and sundries (such as car wash sales and lottery and ATM commissions) is recognized at the time of the sale to the customer.

Other Revenue:

Revenue Originating as Physical Forward Contracts and Exchanges—The Partnership’s commodity contracts and derivative instrument activity include physical forward commodity sale contracts. The Partnership does not take the normal purchase and sale exemption available under ASC 815, “Derivatives and Hedging,” for any of its physical forward contracts. This income is recognized under ASC 815 and is included in sales at the contract value at the point where control of the product is transferred to the customer. Income from net exchange differentials included in sales is recognized under ASC 845, “Nonmonetary Transactions,” upon delivery of product to exchange partners.

Revenue from Leases—The Partnership has rental income from gasoline stations and cobranding arrangements and lease income from space leased to several unrelated third parties at several of the Partnership’s terminals.

Transaction Price Allocated to Remaining Performance Obligations

The Partnership has elected certain of the optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. Accordingly, the Partnership applies the practical expedient in paragraph ASC 606-10-50-14 to its contracts with customers where revenue is tied to a market-index and does not disclose information about variable consideration from remaining performance obligations for which the Partnership recognizes revenue.

The fixed component of estimated revenues expected to be recognized in the future related to performance obligations tied to a market index that are unsatisfied (or partially unsatisfied) at the end of the reporting period are not significant.

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Contract Balances

A receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets, is recognized in the period the Partnership provides services when its right to consideration is unconditional. In contrast, a contract asset will be recognized when the Partnership has fulfilled a contract obligation but must perform other obligations before being entitled to payment.

The nature of the receivables related to revenue from contracts with customers and other revenue, as well as contract assets, are the same, given they are related to the same customers and have the same risk profile and securitization. Payment terms on invoiced amounts are typically 2 to 30 days.

A contract liability is recognized when the Partnership has an obligation to transfer goods or services to a customer for which the Partnership has received consideration (or the amount is due) from the customer. The Partnership had no significant contract liabilities at both March 31, 2021 and December 31, 2020.

Note 3.    Net (Loss) Income Per Common Limited Partner Unit

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income or losses is assumed to be allocated to the common unitholders and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at March 31, 2021 and December 31, 2020 excludes 26,896 and 29,383 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 12). These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all periods presented below, the Partnership’s preferred units are not potentially dilutive securities based on the nature of the conversion feature.

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GLOBAL PARTNERS LP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides a reconciliation of net income and the assumed allocation of net income (loss) to the common limited partners (after deducting amounts allocated to preferred unitholders) for purposes of computing net income per common limited partner unit for the periods presented (in thousands, except per unit data):

Three Months Ended March 31, 2021

Three Months Ended March 31, 2020

 

  

Common

  

General

  

 

 

  

Common

  

General

  

 

Limited

Partner

Limited

Partner

 

Numerator:

  

Total

  

Partners

  

Interest

  

IDRs

 

 

Total

  

Partners

  

Interest

  

IDRs

 

Net (loss) income attributable to Global Partners LP

$

(4,297)

$

(5,036)

$

739

$

$

3,276

$

3,254

$

22

$

Declared distribution

$

20,453

$

19,547

$

138

$

768

$

13,476

$

13,385

$

91

$

Assumed allocation of undistributed net loss

 

(24,750)

 

(24,583)

 

(167)

 

 

(10,200)

 

(10,131)

 

(69)

 

Assumed allocation of net (loss) income

$

(4,297)

$

(5,036)

$

(29)

$

768

$

3,276

$

3,254

$

22

$

Less: Preferred limited partner interest in net income

1,820

1,682

Net (loss) income attributable to common limited partners

$

(6,856)

$

1,572

Denominator:

Basic weighted average common units outstanding

 

33,967

 

33,868

Dilutive effect of phantom units